Markets fell Thursday as competition from rising bond yields played on investors minds for one. Big earnings misses from CSCO WMT, themselves may not have been a big deal, but what was said from CSCO, that weakness persists in the emerging markets, was not what investors wanted to hear. Everyone seems to think China is back on the mend. With WMT YUM NKE, all expressing concerns with sales there, perhaps that is a bit misleading. The length of time the benchmarks have been carrying that “wall of worry”, is starting to show its wear and tear. Where markets would attempt to make comebacks and fight off early session lows to finish in the upper half of their daily ranges (bullish traits), is not happening with anywhere near the same frequency it did earlier in the year. Looking at the leading Nasdaq index, you see 6 of the last seven down days finished at the bottom of its daily range (7/23, 7/29, 8/6, 8/9, yesterday and today). That suggests some weakening internals. Problem is everyone seems bearish, and calling for a deeper correction. If they are right both the Nasdaq and S&P 500 are between 2 and 3% off recent highs. Another 7% lower is a big move. SDS is readying itself for its bi monthly upside test of the 50 day SMA. Will it have the stamina, that the major averages seem to be lacking now, to make a sustained move higher?

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